Apple has invested an additional $252 million in Globalstar, an American satellite communications company, as part of its partnership to provide Emergency SOS via satellite on the iPhone 14 series.
The feature uses Globalstar’s low Earth orbit network to enable users to connect to emergency services via satellite in areas without cellular and Wi-Fi connectivity. The new investment has been given as a loan through funding on a quarterly basis, subject to certain conditions in the agreement. The agreement with Apple requires Globalstar to make payments over a period of 16 quarters beginning no later than the third quarter of 2025.
Apple’s previous investment of $450 million in Globalstar has been used to develop and maintain the infrastructure required to make Emergency SOS via satellite on iPhone 14 possible. In return, Globalstar has committed 85% of its current and future network capacity to the safety feature. Apple’s investment will help Globalstar stay afloat during the free Emergency SOS via satellite service period until November 2024.
Globalstar operates a low Earth orbit satellite network for satellite phones and low-speed data communications in remote areas without Wi-Fi and cellular coverage. Its services are available in more than 120 countries. The company plans to use the proceeds of the prepayment to pay amounts due and payable under its Satellite Procurement Agreement with Macdonald, Dettwiler, and Associates Corporation and launch, insurance, and ancillary costs incurred in connection with the construction and launch of these satellites.
In November 2022, Apple launched the Emergency SOS via satellite feature on iPhone 14, available in the United States, Canada, the UK, France, Ireland, and Germany. The company plans to expand the feature to more countries in the coming months.
A patent granted to Apple by the US Patent and Trademark Office suggests that the company plans to expand satellite communication for calls, video streaming, and more, beyond the iPhone 14 Emergency SOS via satellite service.
